The Federal Transit Administration's agreement with the Northern Indiana Commuter Transportation District will allow construction to start on expanding the South Shore rail line to a double track between Gary and Michigan City.

The project includes four new stations: two in Hammond, one in Munster and one at the border of Munster and Dyer.

The United States Department of Transportation has awarded Indiana $177.5 million for two projects one in Lake County and the other in Indianapolis.

South Bend and St. Joseph County officials reached an agreement this past week for splitting $18 million for the project's local contribution.

The U.S. Department of Transportation has awarded a $2.8 million railroad safety grant to the Chicago South Shore and South Bend Railroad to upgrade 7.5 miles of rail between Michigan City and the city of LaPorte.

If approved, the one-way fare to Chicago from stations in Hammond east to Michigan City will go up by 50 cents effective July 1. Fares for stops east of Michigan City to South Bend will go up 75 cents.

Two projects on the line are aimed at easing travel into and from Chicago.

The special-purpose districts are designated to help fund specific transportation projects.

The Chicago Tribune reports the state, along with northwest Indiana communities, have pledged half the money for the nearly $1 billion project.

U.S. Transportation Secretary Elaine Chao said Indiana's work on the toll road and South Shore rail line should be viewed as models for the rest of the country.